Shareholders of Citadel Capital, a leading investment company in Africa and the Middle East with $9.5 billion in investments under control, has approved the launch of an EGP3.64 billion capital increase at an extraordinary general meeting (EGM) in Cairo.

The share issuance will be at par value (EGP 5) and would see the firm’s paid-in capital rise to EGP8.0 billion from EGP 4.36 billion.

The share issuance is part of the firm’s transformation from the largest private equity firm in Africa into the leading investment company in the region.

Citadel Capital will use the share issuance to reach majority ownership in most of its platform companies, in particular the firm’s subsidiaries in its five core industries: energy, transportation, agrifoods, mining and cement.

The firm plans to exit non-core investments over the coming few years as it transforms its business model to become an investment company.

“Approval to launch the capital increase signals clear shareholder confidence in our transformation into an investment company,” said Citadel Capital Chairman and Founder Ahmed Heikal.

“The long-term holding periods permitted by the new model will allow Citadel Capital to maximize value creation through a balanced portfolio that includes a healthy mix of both assets that provide stable dividend streams and that are cash generative, and others that are in high-growth phases.”

The EGM called on shareholders to subscribe to 728,375,000 newly issued shares, of which 182,093,750 are preferred shares and 546,281,250 common shares.

Shareholders will participate in the share issuance on a pro-rata basis.

The EGM also authorized Heikal, in his capacity as chairman, to announce the subscription period and to call for a subsequent subscription round in the event that the share issuance is not fully subscribed in the first instance, all according to the relevant rules and regulations of the General Authority for Investment (GAFI) and the Egyptian Financial Supervisory Authority (EFSA).